The rupee extended its losses and slumped 10 paise to close at a record low of 77.72 (provisional) against the US dollar on Thursday, weighed down by a negative trend in domestic equities and unabated foreign fund outflows.
The rupee has been under-pressure after the global central banks started normalising policy and last week RBI too started raising key interest rates.
At the interbank foreign exchange market, the rupee opened lower at 77.72 against the greenback, and finally settled for the day at 77.72, down 10 paise over its previous close.
During the trading session, the rupee touched an intra-day low of 77.76 and a high of 77.63.
On Wednesday, the rupee declined by 18 paise to close at 77.62.
Money market participants are currently closely watching the domestic share market for clues to fund flows.
FPIs remain sellers in bonds, equities
Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities Ltd, said, “USDINR spot closed at a fresh all-time high at 77.72 levels, up 14 paise, as FPI remained sellers in bonds and equity. However the gains were muted as US Dollar Index was weak. Over the near-term we expect USDINR to maintain an upward drift but the overall price action will be of a range. A broad range of 77.30 to 78 is expected on spot.”
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services said, "Rupee consolidated in a narrow range despite sharp sell-off in domestic and global equities. Dollar also retraced from higher levels after economic number released from the US came below estimates".
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.28 percent lower at 103.51.
Crude prices down
Global oil benchmark Brent crude futures fell 1.87 percent to $107.07 per barrel.
Sensex, Nifty plunge
The 30-share BSE Sensex ended 1,416.30 points or 2.61 percent lower at 52,792.23, while the broader NSE Nifty fell 430.90 points or 2.65 percent to 15,809.40.
FIIs net sellers
Foreign institutional investors were net sellers in the capital market on Wednesday, as they offloaded shares worth Rs 1,254.64 crore, as per stock exchange data.